Definitions for basis point
ba·sis point

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1. basis pointnoun

   One hundredth of one percentage point

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1. Basis point

   A basis point (often abbreviated as bp, often pronounced as "bip" or "beep") is one hundredth of 1 percentage point. The related term permyriad means one hundredth of 1 percent. Changes of interest rates are often stated in basis points. If an interest rate of 10% increased by 1 bp, it changed to 10.01%.

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1. Basis point

   A basis point is a unit equal to one hundredth of a percentage point, or one part per ten thousand, 1/10000. The same unit is also called a permyriad, literally meaning 'for myriad', and in that context is written with U+2031 ‱ per ten thousand sign which looks like a percent sign with two extra zeroes at the end. A basis point is defined as:−4¹ Basis points are used as a convenient unit of measurement in contexts where percentage differences of less than 1% are discussed. The most common example is interest rates, where differences in interest rates of less than 1% per year are usually meaningful to talk about. For example, a difference of 0.10 percentage points is equivalent to a change of 10 basis points. Like percentage points, basis points avoid the ambiguity between relative and absolute discussions about interest rates by dealing only with the absolute change in numeric value of a rate. For example, if a report says there has been a "1% increase" from a 10% interest rate, this could refer to an increase either from 10% to 10.1%, or from 10% to 11%. If, however, the report says there has been a "10 basis point increase" from a 10% interest rate, then we know that the interest rate of 10% has increased by 0.10% to a 10.1% rate.

How to pronounce basis point?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say basis point in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of basis point in Chaldean Numerology is: 8

2. Pythagorean Numerology

   The numerical value of basis point in Pythagorean Numerology is: 7

Examples of basis point in a Sentence

1. John Rekenthaler:

   The big plans will get even cheaper, a big plan sponsor might wind up paying one basis point instead of 10 basis points for the same fund.

2. Bill Gross:

   A 30-year Treasury at 2.5 percent can wipe out your annual income in one day with a 10 basis point increase, the secret in a negative interest rate world that poses extraordinary duration risk for AAA sovereign bonds is to No 1, keep bond maturities short and No 2 borrow at those attractive yields in a mildly levered form that provides a yield and expected return of 5-6 percent.

3. George Ratiu:

   While the Fed signaled that it will continue to raise rates this year, the moves are expected to come in 25 basis point increments, a less aggressive tightening than what we saw in 2022, the central bank is acknowledging that it sees its monetary actions having a tangible effect on inflation. The CPI data out this week seems to confirm the bank’s views.

4. Marvin Loh:

   I wouldn't discount a 100 basis point rate hike, it was only a few months ago when a 50 basis point hike seemed unthinkable.

5. David Rubenstein:

   We're going to have two consecutive 50 basis point hikes over the next few meetings. If it's less, the market will think Federal Open Market Committee doesn't take [ the economic situation and high inflation ] seriously. If it's more, [ the market ] will think it's worse than we thought.

References

1. ^ Wiktionary
   https://en.wiktionary.org/wiki/Basis_Point
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Basis_Point
3. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=basis point